Grove Pointe Condos in North Myrtle Beach: An Investor Case Study

Grove Pointe is a low-rise condo complex in the Cherry Grove section of North Myrtle Beach. This second-row building (across Ocean Boulevard from the beach) offers two-bedroom, two-bath units with private balconies and on-site amenities like a pool and BBQ area. Its small scale – only ~3 residential stories above parking – provides a quieter, more intimate setting than the mega-resorts.

Overview: Location & Property Features

Grove Pointe sits at 4601 N Ocean Blvd. in the Cherry Grove Beach area of North Myrtle Beach, SC. The location is prime for vacationers – just steps from the beach and a few blocks from the Cherry Grove Pier. Being “second row,” it isn’t direct oceanfront, but many units have partial ocean views from their balconies (accessible from both the living room and master bedroom). The trade-off is a more serene, residential feel; as a mid-size four-story building with only a couple dozen units, Grove Pointe avoids the hustle of high-rise resorts.

Each condo in Grove Pointe is a 2-bedroom, 2-bathroom unit, roughly ~1,000 sq. ft. in size (some listings report up to ~1,368 sq. ft depending on inclusion of porches). Units feature full kitchens, in-unit washer/dryers, and private balconies, making them well-equipped for longer stays. Built in 1987, the complex has seen many units updated over time – some are now fully renovated with modern kitchens, flooring, and furnishings. On-site amenities include a outdoor swimming pool and a picnic/grill area. There’s covered parking under the building, and owners even have ground-level storage closets for beach gear. Notably, there is no elevator, so upper-floor units require stair access – a consideration for elderly guests, but many visitors don’t mind getting their “steps in” to enjoy the top-floor views.

HOA policies are investor-friendly. The homeowners association allows both short-term vacation rentals and long-term rentals without restrictions. This flexibility is crucial, as it lets an owner rent nightly/weekly on Airbnb or VRBO, or opt for a year-long tenant if desired. The HOA also permits owners to have motorcycles or golf carts on-site (useful for personal use), though rental guests are generally not allowed to bring them per house rules to maintain peace. In short, Grove Pointe’s setup is ideal for someone looking to use the condo part-time and rent it out when not in use, or purely as an income property.

Short-Term Rental Performance (2023–2024)

Vacation rental demand in North Myrtle Beach has been robust in 2023–2024, and Grove Pointe is positioned to capitalize on it. According to market analytics, a typical Airbnb in North Myrtle Beach was booked ~212 nights in the past year (about 58% occupancy) with an average daily rate around $190. That translates to roughly $39,000/year in gross rental income for the median host. Grove Pointe’s two-bedroom units, with their close beach access and ocean peek views, have shown performance in line with these city-wide figures. Many owners target the lucrative summer weeks at high nightly rates and fill in spring/fall weekends and monthly winter “snowbird” stays to maximize revenue.

Rental Rates and Occupancy: Peak summer weekly rates for a 2BR at Grove Pointe can reach ~$1,300–$1,700. For example, one unit’s rates in late July 2024 were around $250–$335 per night (about $1,500+ per week in peak season). In the off-season winter months, nightly rates dip to the $100–$125 range, with deep monthly discounts common for long winter stays. The shoulder seasons (spring and early fall) see moderate rates ($150–$200/night) and decent occupancy on weekends. Overall, annual occupancy tends to land in the 50–65% range for well-marketed units – with nearly full occupancy in June-August (back-to-back weekly bookings) and much lower occupancy in the winter. A diligent owner or property manager can push the annual occupancy higher with off-season marketing (e.g. monthly snowbird rentals or holiday/festival weekends), but hitting much above ~60% year-round is challenging given the seasonal nature of the Myrtle Beach market.

Gross Rental Income: In dollar terms, Grove Pointe 2BR condos gross roughly $25,000 to $40,000+ per year from short-term rentals, depending on how aggressively they’re rented and the unit’s condition. Average-performing units in 2023 were often in the high-$20k to low-$30k range for gross rent. Top performers – typically units that are newly renovated, beautifully furnished, and actively promoted – can approach or even exceed $35–$40k in annual gross revenue. For instance, some comparable 2BR condos in North Myrtle Beach grossed ~$38–$39k in 2023, which is a feasible target for a premium Grove Pointe unit given its 2nd-row (non-oceanfront) status. It’s important to note these figures assume rental as a vacation condo for most of the year. Owners who use the unit heavily themselves (or limit rentals) will obviously see lower revenue. But from an investor perspective, one would treat this as primarily a rental property with perhaps occasional personal use in shoulder seasons.

Net Operating Income (NOI): Converting gross rental dollars into profit requires subtracting expenses. Grove Pointe’s carrying costs and operating expenses have a significant impact on net income:

• HOA Dues: Monthly HOA fees are approximately $733 as of 2024. This equates to about $8,800 per year in fixed expense. The HOA fee covers building insurance and maintenance, pool upkeep, landscaping, basic utilities like cable TV, internet, trash pickup and common area utilities. While this package provides turnkey maintenance for owners, it is a substantial expense line that can represent 20–30% of gross rental income for many units. High HOA dues are common in resort-area condos, but investors must account for them when calculating returns.

• Property Management: Owners who self-manage via Airbnb/VRBO can save on management fees, but many opt to hire a local property manager or join a rental program for convenience. Full-service vacation rental management in the Myrtle Beach area typically charges 20–25% of gross rent (plus cleaning fees paid by guests). If a unit grosses $30,000, a 20% management fee would be $6,000. Some owners negotiate lower rates or use à la carte services (for example, paying a local cleaner/inspector and managing bookings themselves). Self-managing can substantially improve net income – but it requires work, responsiveness, and hospitality skills from the owner. For estimation, we’ll assume ~20% of gross as a management/marketing cost if not owner-managed.

• Property Taxes: As a non-primary residence (investment property) in South Carolina, the condo’s property tax is assessed at 6% of value. On a ~$320,000 condo, annual taxes are roughly $3,700–$4,000. (For example, one recent sale at $325k had an annual tax bill of $3,729.) Taxes will vary slightly by exact sale price and millage rates, but ~1.1–1.2% of the purchase price is a good rule of thumb for Horry County investment property tax.

• Insurance: The HOA’s master policy covers the building structure, but an owner will carry an HO-6 condo insurance policy for contents and interior (and liability). Budget around $500–$800/year for a robust policy, depending on coverage.

• Utilities & Misc.: Since HOA includes cable TV and internet service, the owner typically only pays interior electric (and water, if not covered by HOA – often water/sewer is included, but if not, add that cost). Electric for a 2BR condo might average $50-$100/mo when occupied. Additionally, supply restocking, minor maintenance, and an allowance for repairs or replacements (furniture, appliances, wear-and-tear) should be factored in. Many experienced investors set aside ~5% of gross for maintenance/CapEx reserves. For a heavily rented beach condo, this is wise given the salt air and high guest turnover (e.g. AC service, replacing a sofa bed every few years, etc.).

Taking these into account, we can estimate net income scenarios:

• Average Scenario: Gross $30,000; minus HOA $8,800; minus manager $6,000; minus tax $3,800; minus other $1,500 → Net ≈ $9,900. This would be a case of using full management services. Net could be higher (around $15k) if owner-managed (saving the $6k fee).

• High-Performance Scenario: Gross $40,000; minus HOA $8,800; minus manager $8,000; minus tax $4,500; minus other $2,000 → Net ≈ $16,700 (or up to ~$24k if self-managed). Here a top-grossing unit that’s owner-managed might clear roughly $20k+ net after all costs.

In percentage terms, operating expenses can consume roughly 50% of gross rental income in a fully managed scenario. This is why short-term rentals, while high grossing, often net out to modest cap rates once all costs are paid. However, the reward is that owners still often see higher cash flow than they would with a long-term tenant in the same unit. In fact, industry data suggests monthly cash flow from short-term rentals is typically about double that of traditional long-term rentals, even after the extra expenses – compensating investors for the extra effort and risk.

Cap Rate Analysis: Cap rate (annual net operating income divided by purchase price) is a key metric for investors. Let’s consider a Grove Pointe condo purchased around $320,000 (the ballpark market value for a nicely renovated 2BR as of 2024, based on recent sales in the $300–$345k range). Using the scenarios above:

• At ~$10k net (fully managed average scenario), the cap rate is about 3.1% ($10k/$320k).

• If self-managing to net ~$15k, cap rate ~4.7%.

• A high-performing unit netting ~$20k on $320k yields a cap rate around 6.3%.

So realistically, cap rates in the 4–6% range are achievable for a well-bought Grove Pointe condo, with mid-5% being a reasonable target for an active investor. This assumes current pricing and the described rental performance. Cap rates around 5% may not seem high, but they are fairly typical for beach vacation condos (where appreciation and personal use enjoyment often augment the return). It’s also worth noting this is unleveraged ROI – if an investor uses financing (e.g. 25% down with a mortgage), the cash-on-cash return could be higher, though interest rates in 2024 (hovering ~7% for investment condos) mean one must carefully crunch numbers to ensure positive cash flow after debt service.

Long-Term Rental Viability

While Grove Pointe shines as a vacation rental, it’s also important to evaluate long-term rental potential. The HOA explicitly permits long-term leases (e.g. 6-12 months), giving owners a fallback or alternative strategy. In practice, a 2BR/2BA condo across from the ocean in Cherry Grove might attract a long-term tenant (especially a retiree or someone working locally) at approximately $1,500–$1,800 per month rent. For example, a furnished 2BR steps from the beach could likely command around $1,600/month on a 12-month lease, depending on finishes and season. This equates to a gross annual income of ~$18,000–$21,600 from a long-term tenant.

Compare this to the short-term scenario: the long-term gross is significantly lower, but many expenses would also drop:

• Management for long-term is typically 10% or less (or owner-landlord can self-manage more easily when it’s one tenant, not dozens of weekly guests).

• Turnover costs (painting, deep cleaning) happen maybe once a year vs. constant cleanings.

• Utilities: often a long-term tenant would pay their own electric/internet, etc. However, at Grove Pointe the HOA still charges the owner $733/mo regardless – that covers cable/internet and building upkeep, but the owner could potentially pass a portion of that cost into the rent or just consider it a cost of ownership.

• No occupancy gaps – long-term provides 100% occupancy (given a stable tenant), which is a plus.

Net income from a long-term rental might look like: $19k gross; minus HOA $8.8k; minus taxes $3.8k; minus management $1.9k (if any); leaving around $4,500–$7,000 net. Even if self-managed (saving that ~10%), you might net on the order of ~$8k after fixed costs. This is roughly half of what an aggressive short-term strategy could net. Indeed, as mentioned earlier, short-term rentals tend to produce roughly double the cash flow of long-term rentals for the same property.

So, why consider long-term at all? There are a few reasons:

1. Stability and Simplicity: Long-term tenants provide steady income without the constant booking hustle. An owner may choose this route if they prefer a “hands-off” investment or if they’re local and want a reliable tenant in place.

2. Off-Season Fill-Ins: Some owners do a hybrid – renting short-term in summer when income is maximized, then securing a “snowbird” renter for 3-6 months in fall/winter at a monthly rate. This can yield a nice balance (high summer income plus guaranteed winter rent and someone to keep the unit occupied in the off-season).

3. Regulatory or Personal Preference: If ever short-term rentals became restricted (currently North Myrtle Beach is lenient on STR regulations, but things can change), the ability to pivot to a long-term lease provides an exit strategy. Also, certain retirement account ownership structures (discussed later) might prefer long-term tenants to avoid unrelated business income tax issues, etc.

In summary, long-term renting at Grove Pointe is viable but yields a lower return on investment. It would likely not cover all expenses unless the unit was bought at a much lower price, but it can still offset a good portion of carrying costs. Most investors eyeing Grove Pointe are focused on short-term vacation rental use (because that’s where the highest ROI is). However, knowing that a long-term option exists adds a layer of safety – as one expert noted, you can always revert to a traditional lease “with a lower yield” if needed.

HOA Fees, Policies & Impact on Returns

The Homeowners Association at Grove Pointe is an important factor in any investment analysis. Here are the key points about the HOA and how they affect returns:

• Monthly Dues: The HOA fee is approximately $733 per month as of 2024. This is relatively high for a 2BR condo, but it’s a function of the building’s small size (fewer owners to share costs) and inclusion of many utilities/services. This fixed fee totals about $8,800 annually, which significantly impacts cash flow. Investors must budget for HOA dues as a non-negotiable expense that exists regardless of occupancy.

• What’s Included: The HOA fee covers a broad range of items, reducing the owner’s direct responsibilities. Building insurance and exterior maintenance are covered, as are amenities upkeep (pool cleaning, landscaping, common area electricity). Notably, cable TV, internet, trash pickup, and pest control are provided through HOA – meaning owners/guests have Wi-Fi and TV included, and you won’t receive separate bills for trash or basic cable/internet. Water/sewer is also commonly included (though one should verify the current HOA disclosure). Having these included helps with marketing (you can advertise “free Wi-Fi and cable” to guests) and lowers variable utility costs, but of course it’s all reflected in that hefty monthly fee.

• Reserves & Maintenance: A portion of HOA dues typically goes toward reserve funds for major repairs (roof, structure, painting, etc.). Given the building’s age (1987) and coastal exposure, check the HOA’s financials for reserve health – a well-funded reserve can prevent surprise special assessments. Thus far, Grove Pointe has no known significant deferred maintenance; the exterior appears to have been kept in good shape (many units advertise updated HardiePlank siding, etc.). The high dues suggest the HOA is proactive in maintaining the property.

• Rental Policies: Grove Pointe’s HOA is very rental-friendly. Short-term rentals are allowed (owners and property managers can rent nightly/weekly without any minimum stay requirements). Long-term rentals are also allowed with no community restrictions. There is no “on-site rental management company” forcing you into a program – owners are free to self-manage or choose any rental agency. This flexibility is a huge plus. Some condo buildings impose offseason closing, rental caps, or other restrictions, but not here. The only limits come from general community rules (no house parties, no excessive noise – typical stuff to ensure the residential peace). The HOA also allows owner use of golf carts and motorcycles on the property (there’s space under the building), which is great for personal use. However, most rental agreements (and likely HOA rules) prevent renters from bringing motorcycles or golf carts to avoid liability and noise issues. Pets: Typically short-term renters are not allowed pets (per HOA or owner preference), while owners can have pets with some restrictions (this is common, though specific Grove Pointe covenants should be checked for any pet rules).

• Impact on Returns: We touched on this earlier, but to reiterate – the HOA fee is the single largest expense item, often exceeding property taxes by 2x or more. In effect, the HOA acts like a “proxy” for many operating expenses (covering insurance, utilities, amenities, etc.), which is convenient but front-loads the cost. High HOA dues tend to lower the net yield (cap rate) on the property. For example, if HOA were half as much, the net income would increase dramatically. That being said, every investor in Myrtle Beach’s resort market contends with HOA fees; Grove Pointe’s dues are actually moderate compared to large oceanfront resorts (which can be $800-$1200+/mo for a 2BR due to extensive amenities). So, Grove Pointe sits in the middle – higher HOA than some inland condos (with fewer amenities), but you’re getting a pool, insurance, and utilities folded in, which has its advantages. The key is to underwrite these fees into your calculations. Before purchasing, an investor should request the HOA’s financial statements, understand if any fee increases or assessments are on the horizon, and factor the current $733/month into all pro formas. It’s also wise to verify HOA rules/policies such as: Is there a rental registration required? Any move-in/move-out fees for tenants? (Unlikely here, but good to confirm.) Are there quiet hours or occupancy limits? Most of these are standard and geared toward ensuring a good experience for everyone.

In summary, Grove Pointe’s HOA fee is a significant expense but it buys peace of mind and turnkey management of many property aspects. The policies are very favorable for maximizing rental income (no rental prohibitions and amenities that guests expect). A savvy investor will view the HOA as both an investment in property upkeep and a fixed cost that must be mitigated with strong rental performance.

Value-Add Potential: Renovation ROI & Upgrade Strategies

One of the upsides of an older complex like Grove Pointe is the opportunity to add value through renovations and upgrades. Many units have already been updated by owners to boost rental appeal. For those considering purchasing an unrenovated condo, or looking to increase their rental income, targeted upgrades can yield a strong return on investment (ROI) in terms of higher nightly rates and occupancy. In 2023–2024, guests have shown a willingness to pay a premium (and leave better reviews) for units that feel modern, fresh, and well-equipped. Here are some proven upgrade strategies for maximizing rental performance:

• Increase Sleeping Capacity: More heads in beds can translate to higher rental income, as larger families or groups are willing to pay more for space. If it fits the floor plan, consider creative bedding solutions. For example, one Grove Pointe owner built a custom twin-over-queen loft bunk bed with a pull-out twin trundle underneath, allowing the second bedroom to sleep four people (queen + two twins) instead of the usual two. Combined with a sleeper sofa in the living room, this turned a 2BR unit into sleeping accommodations for 7 guests. Such an upgrade can expand your market to include two-family groups or larger families who will pay more compared to a unit that only sleeps 4–5. Be mindful not to overcrowd, though – balance sleeping capacity with comfort.

• Modernize the Interior Decor: First impressions in online listings matter immensely. Fresh paint, new flooring (e.g. durable LVP instead of old carpet), updated light fixtures, and coastal-modern furnishings can significantly boost your condo’s appeal. Guests often mention when a rental feels “updated” or “dated” in reviews. One local property manager noted that even simple cosmetic refreshes – “fresh coats of paint, new pillows or comforters... maybe a change in a picture or two on the walls” – can make a unit feel new again. In Grove Pointe’s case, many units were built with 1980s layouts but have since been opened up or redone. If your unit still has, say, original cabinetry or mirrored walls, an update could both increase your nightly rental rate and occupancy (people gravitate to photos of a bright, contemporary interior) and increase your resale value down the line. Importantly, guests reward clean, well-decorated units with positive reviews, which in turn drives more bookings. One review of a Grove Pointe condo highlighted that it was “very clean and in great shape”, making it a perfect quiet retreat – exactly the kind of feedback that attracts future renters.

• Enhance Amenities & Convenience: Think about adding perks that make your rental stand out. For instance, a well-stocked kitchen (sharp knives, blender, crockpot, Keurig, etc.) can attract guests who like to cook. Small investments like providing beach chairs, a beach wagon, or family games can earn great reviews. Tech upgrades help too – a smart TV with streaming, high-speed Wi-Fi (already included via HOA), and even smart locks or a digital concierge guide can impress guests. Some owners install keyless entry or Ring doorbells for security/remote check-in (in fact, one unit notes having a Ring doorbell for virtual check-in convenience). Remember, vacationers often choose condos over hotels for the “home-like” amenities, so lean into that. Luxury touches in the bathrooms (nice fixtures, vanity upgrades) or adding a washer/dryer if a unit somehow lacked one (most at Grove Pointe have in-unit laundry already) are worthwhile too. The goal is to make your condo memorable and hassle-free, encouraging repeat visits and justification for a higher nightly rate.

• Professional Photography & Staging: This isn’t a physical upgrade to the unit itself, but it’s one of the highest-ROI investments you can make once the condo is spruced up. High-quality, wide-angle photos with good lighting will dramatically increase your click-through rate on Airbnb/VRBO listings. Consider staging your condo for a photoshoot after you’ve upgraded – set the dining table, place a bottle of wine out, have all lights on and windows open to showcase that airy balcony. As one rental expert put it, upgrades help, but “you will need high quality photos” to truly increase your rental income. Many owners take DIY photos; hiring a professional real estate photographer for a few hundred dollars can pay for itself in just one or two extra bookings. In the competitive Myrtle Beach vacation rental market, presentation is everything.

How do these upgrades translate to ROI? Let’s say you spend $15,000 on a moderate renovation (new LVP floors, fresh paint, some new furniture, updated light fixtures). If this allows you to increase your average nightly rate by just $20 and adds 5% higher occupancy, that could be an extra ~$3,000–$5,000 per year in revenue – a ~20–33% cash-on-cash return on the upgrade cost, paying back in 3-5 years, plus a likely boost to your property’s value. Some upgrades (like adding sleeping capacity) might immediately allow you to market to a larger group size and charge, for example, $1,600/week instead of $1,300 in peak season. The key is focusing on improvements that renters directly value: comfort, cleanliness, aesthetics, and convenience. Not every upgrade pays off (e.g. adding an expensive sound system might not matter if guests aren’t explicitly looking for that), so stick to the essentials that broaden your audience or allow a rate premium.

In summary, Grove Pointe investors can add significant value through renovations. Many competing units on the rental market are also upgrading, so to stay competitive (or to out-compete and capture more bookings), one should view the condo as a product that needs occasional refresh. The good news is that the basics – fresh coastal decor, ample sleeping arrangements, modern amenities – truly delight guests, as evidenced by glowing reviews and repeat bookings. The result is not only higher income but less vacancy and potentially lower marketing costs (since great reviews can help fill your calendar organically).

Guest Experience & Reviews (Airbnb/VRBO Insights)

Ultimately, the success of a vacation rental property like Grove Pointe hinges on guest satisfaction. Guest reviews from platforms like Airbnb, VRBO, and Booking.com provide valuable insight into what the market loves (or dislikes) about these condos. The consensus from 2023–2024 guest feedback is overwhelmingly positive for Grove Pointe units, especially those that are well-maintained. Here are some common themes from guest reviews:

• Cleanliness & Condition: Nearly every review emphasizes that the condos are extremely clean and well-kept. For instance, one guest commented “The condominium is very clean and in great shape”. This reflects well on both the individual owners/cleaners and the HOA’s maintenance of common areas. Travelers take comfort in knowing a privately-owned condo can be as clean as a hotel. Tip: Owners should invest in professional cleaning and periodic deep cleans; it’s paying off in the reviews.

• Quiet, Relaxing Atmosphere: Guests love the peace and quiet at Grove Pointe. Unlike high-density resorts, this building’s smaller size means fewer people and less noise. One reviewer noted, “It’s very quiet here… Perfect size for 2 people looking for some R&R.”. The absence of on-site bars or crowds is a selling point for families and couples who want a restful beach vacation. The location in Cherry Grove (a more residential, north end of the beach) also contributes to the tranquility. As an investor, you can market this “serene beach retreat” angle. Just be cautious during peak weeks about potential noise (e.g. July 4th can get lively everywhere).

• Proximity to Beach & Attractions: Almost every guest mentions the convenience of walking across the street to the beach. They love that they can be on the sand in under 2 minutes, without paying oceanfront prices. Many also appreciate being near Cherry Grove Pier (about a 5-10 minute walk). Fishing enthusiasts and families enjoy the pier for both its views and fishing opportunities. One VRBO guest wrote that grabbing beach essentials and “heading across the street for a day of sun and surf” could not be easier. Additionally, guests enjoy the proximity to local favorites: ice cream shops, the Boulineau’s grocery store, and take-out seafood joints in Cherry Grove. A short drive (10-15 min) puts them at Barefoot Landing, House of Blues, or other North Myrtle Beach attractions. Overall, the location gets high marks – it’s slightly removed from the busier Myrtle Beach strip but still close to plenty of entertainment.

• Amenities & Unit Features: Guests frequently highlight the in-unit amenities like the full kitchen and washer/dryer. These allow families to cook meals and do laundry, adding convenience for week-long stays. Many also enjoy the balcony, even if the view is limited – “the view from the balcony is just enough to see the ocean” noted one reviewer, who still found it delightful to have morning coffee with sea breezes. The pool, while not large, is described as clean and refreshing – a nice alternative when the ocean is chilly or rough. A few reviews mention using the BBQ grill area for a cookout. Parking being under the building is another plus (cars stay cool in the shade, and there’s ample space for two cars per unit). Essentially, guests feel they have all the comforts of home at Grove Pointe, combined with a beach vacation.

• Areas of Improvement / Caveats: No place is perfect, and honest reviews bring up a couple of points. The most common “negative” (if we can call it that) is the stairs. Since there’s no elevator and units can be on the 3rd floor, some guests (especially older ones or those with lots of luggage) mention the climb. One guest quipped “You get your steps in being on the 3rd floor” but still gave a positive review, implying it was worth it for the view/quiet. As an owner, it’s wise to disclose the lack of elevator in your listing (set expectations) and perhaps offer an early check-in or help coordinate luggage for older renters if possible. Another occasional issue could be dated units – but this applies only to those few condos not yet renovated. Units that haven’t been updated in decades might get feedback about old decor or appliances. However, given the trend of upgrades, such units are becoming rarer in the rental pool. One other minor note: because this is a family-oriented building, renters are screened for age/family status (no student party groups, etc.). This is a positive for reviews (no wild parties = happy neighbors and guests), but it means as an owner you or your manager should continue that policy of renting to families and responsible adults, which is standard in North Myrtle Beach anyway.

• Overall Satisfaction: Grove Pointe rentals are earning 4.8 to 5.0-star ratings on average. Guests often say it’s a “hidden gem” and a great value – they get a clean, spacious 2BR condo by the ocean for the price of a smaller hotel room elsewhere. The combination of affordability, location, and comfort is repeatedly praised. Many reviewers mention they plan to return or recommend to others, which bodes well for repeat bookings. For an investor, these happy guests translate into solid booking calendars and the ability to gradually increase rates (within reason) as your unit builds a reputation.

In conclusion, the guest perspective reinforces our investment case: Grove Pointe is delivering the experience visitors want – and as long as owners keep units updated and clean, there is every indication that strong reviews (and thus strong demand) will continue. Investors should continuously monitor their own guest feedback and adjust accordingly. Even a small issue, if mentioned in reviews (say a slow-draining shower or a missing kitchen item), should be fixed promptly to keep that 5-star streak going. The reward is not just good feelings, but tangible income – better reviews lead to higher placement in Airbnb/VRBO search results and justify premium pricing.

Comparison to Nearby Condo Investment Options

North Myrtle Beach has a variety of condo buildings catering to investors. How does Grove Pointe stack up against similar properties in the area? Let’s compare it to two categories: another low-rise second-row condo in Cherry Grove, and a larger oceanfront resort-style property. These comparisons will highlight Grove Pointe’s unique strengths and what trade-offs an investor makes by choosing it.

1. “Second-Row” Cherry Grove Competitor – Bermuda Run
Just a few blocks south of Grove Pointe lies Bermuda Run, another Cherry Grove condo complex (on 20th Ave. North). Like Grove Pointe, Bermuda Run is a low-to-mid-rise building in a residential area one row off the ocean. However, Bermuda Run is a bit larger and offers more extensive amenities. Built in 1985 (around the same era), it has been recently updated and features both 2-bedroom and 3-bedroom units (approximately 1,000–1,350 sq ft each). Notably, Bermuda Run has an elevator for easy access, and its “resort-style” amenities include a 90-foot outdoor pool, a kiddie pool, hot tub, sundeck, and even a small clubhouse for gatherings. These extras make it attractive to families with children and those who prioritize convenience.

In terms of rentals, a 2BR at Bermuda Run would attract a similar market as Grove Pointe’s, though the presence of 3BR units means investors can also target larger groups there. The rental income for a 2BR second-row should be in the same ballpark, perhaps slightly higher in peak season if Bermuda Run’s bigger pool and elevator sway some renters. HOA fees at Bermuda Run are likely comparable or slightly higher due to the extra amenities (for exact figures, one would need to check their HOA, but both being older small complexes, fees will be on the higher side). Both communities allow short-term rentals. Bermuda Run’s advantage is in amenities and some units’ size; Grove Pointe’s advantage is its ultra-close proximity to the ocean (Bermuda Run is a bit further back, overlooking a lake and about a block from the beach) and possibly a quieter environment (fewer units overall, and being farther north away from some condo-hotels). An investor deciding between the two would consider: Do I want the simpler, slightly smaller building literally steps from the beach (Grove Pointe), or a slightly larger complex with more amenities and 3BR options a block off the beach (Bermuda Run)? Both can be great investments; in fact, some investors diversify by owning one of each, appealing to different renter segments.

2. Oceanfront Resort Alternative – Prince Resort
At the endpoint of Cherry Grove Beach (3500 N Ocean Blvd) stands the Prince Resort, a two-tower high-rise resort adjacent to the Cherry Grove Pier. This is a completely different scale and style of property. Prince Resort Phase I is an oceanfront tower built in 2007, boasting direct ocean views, on-site restaurants, multiple pools including a rooftop pool and lazy river, fitness facilities, and a concierge. Its 2BR condos are similar in size (around 1,100 sq ft) but come with spectacular oceanfront panoramas. For investors, Prince Resort offers the allure of high nightly rates in summer – a 2BR oceanfront there can often command $2,000+ per peak week given the views and resort amenities. Gross rental incomes can be higher than Grove Pointe’s, potentially $40k–$50k+ for a well-managed 2BR, because many vacationers will pay a premium for the full-service resort experience and oceanfront balcony. However, the trade-offs are significant: purchase prices are higher (currently $380k–$430k for a 2BR oceanfront unit, depending on floor and updates), and HOA fees are much higher (often around $900–$1,000+ per month for a 2BR in Prince Resort Phase I, reflecting the cost of pools, elevators, staff, and utilities). Additionally, some resort developments like Prince may have an on-site rental management requirement or at least heavy competition from the on-site program, which can affect how you operate (Prince actually allows outside management and self-management, but many owners opt into the on-site rental program for convenience, splitting revenue with the management).

In essence, comparing Grove Pointe to Prince Resort is like comparing a boutique apartment to a full-service hotel. Each has its audience: Grove Pointe appeals to renters who want a “homey” feel – a quiet, spacious condo where they can cook and feel like a local, all at a value price. Prince Resort appeals to those who want the works – beachfront bar, daily maid service (if in rental program), and are willing to pay for it. For an investor, Grove Pointe offers a lower cost of entry and potentially higher cap rate (because of the lower price point), whereas Prince offers higher total income but with higher expenses and potentially lower cap rate. Notably, some investors prefer owning in buildings like Grove Pointe because the owner has more control (no large corporate HOA or developer influence, fewer “surprise” assessments that can occur in big resorts, and you’re not one of 300 identical units). Others prefer big-name resorts for marketing clout and liquidity (resort condos can sometimes sell faster to purely lifestyle buyers).

Another consideration: Appreciation potential. Oceanfront units like those in Prince Resort may appreciate faster in hot markets due to the scarce oceanfront land. Second-row units appreciate too, but historically a bit more slowly. However, they also may not dip as hard in downturns because their price points are lower and attract cash-flow-focused buyers. It’s worth looking at recent sales trends: Grove Pointe values have risen from mid-$200s a few years ago to low-$300s now for renovated units, which is a strong increase. Prince Resort units have similarly appreciated, but their higher absolute prices mean the dollar gains are larger but percentage gains might be comparable.

In summary, Grove Pointe holds its own by offering an excellent balance of cost, location, and rental friendliness. When compared to a similar neighbor like Bermuda Run, it stands out for being a bit closer to the ocean and extremely quaint. When compared to a big resort like Prince, it stands out for being far less expensive to buy and operate, while still generating solid rental returns (albeit on a smaller revenue scale). An investor’s choice will hinge on their strategy: maximize cap rate and simplicity (Grove Pointe and its ilk) vs. maximize gross income and amenities (bigger resorts). Some seasoned investors actually diversify across both types to hedge bets. For someone specifically seeking a Cherry Grove investment, Grove Pointe is a compelling option given the limited number of second-row condos in this peaceful north end stretch.

Advanced Investment Strategies: 1031 Exchanges & Retirement Account Purchases

Investing in a condo like Grove Pointe can be part of a larger wealth-building strategy. Two avenues sophisticated investors often explore are 1031 tax-deferred exchanges and using self-directed retirement accounts (IRA/401k) to purchase real estate. Grove Pointe condos qualify for both strategies, and understanding them can open up smart financing and tax moves:

• 1031 Exchange: U.S. tax law (IRC Section 1031) allows investors to defer capital gains taxes when selling one investment property and purchasing another “like-kind” property, as long as specific rules and timelines are followed. In practical terms, an investor could sell another rental property (say a condo in another city, or a single-family rental) and reinvest the proceeds into a Grove Pointe condo, using a 1031 exchange to defer the gain. This means potentially no tax hit at sale – more cash to put down on the new purchase. The idea is to keep your money working for you rather than losing 15-20% (or more) to taxes upon sale. Grove Pointe would be an attractive 1031 target for someone looking to upgrade into a higher-income property or diversify into a beach market. For instance, you might exchange out of an expensive low-yield property up north and into a Cherry Grove vacation condo that yields higher income (plus personal use benefits). Or vice versa: one could sell a couple of smaller condos and 1031 into one larger property. The 1031 rules allow combining or splitting properties in exchanges – e.g., selling one property and buying two condos, or selling multiple and buying one bigger one. The key requirements are identifying replacement property within 45 days of sale and closing within 180 days, among other rules. Using a 1031 for a Grove Pointe purchase defers taxes now, and if held long enough, one could even do a “swap ‘til you drop” (keep exchanging and ultimately your heirs inherit with a step-up in basis, potentially avoiding the capital gains altogether). It’s advisable to consult a CPA or 1031 exchange accommodator to execute properly. But from a high-level view, Grove Pointe condos are solid candidates for 1031 exchanges – they are investment real estate that can be rented (so they qualify as like-kind), and the North Myrtle Beach market is one many exchange investors target for both cash flow and lifestyle reasons.

• Self-Directed IRA / 401(k) Purchase: Did you know you can buy a beach rental inside your retirement account? It’s not mainstream, but it’s absolutely doable through a self-directed IRA (SDIRA) or a Solo 401k plan. With a self-directed retirement account, “you can invest in just about any type of real estate”, including vacation rentals. The IRA (or 401k) actually holds title to the condo, and all rental income flows back into the retirement account, while expenses are paid from the account’s funds. The major benefit is that all rental profits and any appreciation grow tax-deferred or even tax-free (if using a Roth IRA) within the account. For example, an investor could roll over funds from a former employer’s 401k into a self-directed IRA, then use the SDIRA to buy the Grove Pointe condo outright. All rent collected would go back to the IRA, accumulating without immediate taxes. Over a decade, you could conceivably build significant equity and rental income in a tax-sheltered manner. Important rules: When your IRA owns the property, you and your immediate family cannot use it personally – it must be purely for investment (no sneaking in a beach weekend, that’s considered self-dealing by the IRS). Also, any expenses (HOA dues, repairs) must be paid from the IRA, and any new contributions or income go into the IRA. It’s a bit like your IRA is the landlord, not you personally. Some people do this to diversify their retirement portfolio out of stocks and into real estate. And if structured as a Roth IRA, all those rental gains could eventually be taken out tax-free after retirement age.

  Another angle is the Solo 401(k) (for self-employed individuals) which can do similar self-directed real estate investments, often with higher contribution limits and an option to take a 401k loan. In fact, if the full self-directed route is too restrictive (since you can’t use the condo personally during IRA ownership), one can use a 401k loan to help finance the purchase. The IRS allows you to borrow up to $50,000 or 50% of your 401k balance (whichever is less) as a loan to yourself. You then typically have 5 years to pay it back, at a modest interest rate (which you pay back to your own 401k). Many investors use this method to, say, put a down payment on a condo. “For instance, if you have $200K in a 401k, you could take $50K out as a loan, use that as the down payment on a condo, and then repay your 401k over time using rental income”. This essentially leverages your retirement funds without an early withdrawal penalty, and you’re paying interest to yourself instead of a bank. It’s a clever way to inject capital – effectively letting your 401k invest in real estate alongside you. If doing this, you’d get a regular mortgage for the condo for the rest of the price (note: financing a condotel or heavily rented condo can be tricky, but Grove Pointe, being a more conventional condo, often can be financed with a second home loan or investment loan).

Pros and Cons: Using retirement money or exchanges to buy a vacation rental has great advantages – tax efficiency, leveraging existing assets, etc. However, it also comes with complexities. 1031 exchanges have strict timelines and rules; a self-directed IRA purchase must be set up properly with a custodian, and any mortgage used in an IRA has to be a non-recourse loan (since you can’t personally guarantee an IRA loan). And remember, if an IRA owns it, you can’t use the condo personally until perhaps later you distribute it out of the IRA (which would trigger taxes at that time). Despite these wrinkles, many investors successfully use these tools. In fact, beach condos are popular in self-directed retirement accounts for folks who want to diversify into tangible assets and generate income. And 1031 exchanges are common in Myrtle Beach – investors sell properties elsewhere and come here for better cap rates or lifestyle investment.

For someone eyeing Grove Pointe, it could play out like this: You sell a rental home in, say, the Northeast that you’ve held for 10 years, you have a $200k capital gain – you do a 1031 exchange and plop those funds into two Grove Pointe condos, now you have two income streams and a place to retire to eventually. Or, you use a self-directed Roth IRA to buy one – the rental income doubles as retirement income growth. There are even cases of combining strategies (though you cannot mix IRA funds and personal funds easily on the same deal without careful structuring – usually it’s one or the other). The bottom line: advanced strategies like 1031 exchanges and SDIRAs can significantly enhance the after-tax returns on a condo investment. It’s wise to plan these moves with a financial advisor or CPA to ensure compliance and optimal benefit.

Conclusion: Grove Pointe may be a “hidden gem” today, but astute investors are increasingly taking notice of its solid rental track record and flexible ownership benefits. By analyzing 2023–2024 data, we’ve seen that a 2-bedroom unit here can generate strong short-term rental income (often rivaling pricier oceanfront condos on a return percentage basis), while also offering a backup plan for long-term tenancy if needed. The cap rates in the mid-single digits and the potential for personal use (a few weeks at the beach each year) make it an attractive hybrid investment. Of course, careful due diligence is required – factoring in HOA fees, ensuring you have a plan for management, and possibly upgrading the unit to stand out – but the case study of Grove Pointe shows how a savvy investor can enjoy both lifestyle and financial returns. Whether you’re planning a 1031 exchange into a beach property, leveraging a self-directed IRA, or simply buying your first vacation rental, Grove Pointe exemplifies the kind of balanced, income-producing asset that can enhance an investment portfolio. With proper execution, this quaint Cherry Grove condo building can deliver years of enjoyment and profitable performance in the vibrant North Myrtle Beach real estate market.

Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.